Explaining the Behavior of Capital Market Traders with Emphasis on Behavioral Biases and Considering Corporate Social Responsibility and Corporate Information Ambiguity
Keywords:
capital market traders’ behavior, corporate social responsibility, behavioral biases, information ambiguityAbstract
The present study aims to explain the behavior of capital market traders with an emphasis on behavioral biases while considering corporate social responsibility (CSR) and corporate information ambiguity. The research method is ex post facto (causal–comparative) and applied in nature. The statistical population consisted of companies listed on the Tehran Stock Exchange from the beginning of 2014 to the end of 2020, covering a seven-year period. Using a systematic elimination method, 90 companies were selected for analysis. The collected data were analyzed using EViews software. The findings indicated a significant relationship between corporate social responsibility and investors’ trading behavior (p < .05). A significant relationship was also observed between information ambiguity and investors’ trading behavior (p < .05). Behavioral bias had a significant moderating effect on the relationship between corporate social responsibility and investors’ trading behavior (p < .05). Furthermore, behavioral bias significantly influenced the relationship between information ambiguity and investors’ trading behavior (p < .05). Based on the findings, it can be concluded that when corporate social responsibility activities are transparently disclosed, investors’ trading behavior improves; however, when information ambiguity exists, investors’ trading behavior tends to be accompanied by behavioral biases.
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Copyright (c) 2025 Masoumeh Nazari (Author); Seyed Mozafar Mirbargkar; Ebrahim Chirani (Author)
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